CAL Bank Limited is to raise additional capital through a renounceable rights issue to meet the Bank of Ghana’s new capital requirement and to expand its operations and increase efficiency.
Under the arrangement, the bank will put on sale 150 million ordinary shares at a discount price of 20 per cent on the September 4 cut-off price of GH¢0.25 per share. One new share will be allotted to every 1.1275 existing shares.
The issue is also an offer to new shareholders to pick shares of old shareholders who were no longer interested in their shares and were willing to trade them.
The Managing Director of the bank, Mr Frank Adu Jnr, explained at an investors forum in Accra that the bank hoped to generate a total of GH¢ 30 million from the offer.
He said the bank, which currently had 13 branches and 40 automated teller machines (ATMs), hoped to increase its number to 48 and 100 respectively by the end of the year 2011.
Mr Adu further explained that the bank intended to use its branch expansion strategy and improved electronic banking platform to increase retail deposits by enhancing its features and products offerings.
The General Manager of the bank, Mr Philip Owiredu, explained that the net interest income of the bank over the past three years had grown to about 32 per cent, adding that the bank hoped to raise its net interest income to 51 per cent by the end of 2011.
He added that between 2007 and last year, the bank grew its shareholders' funds from GH¢31 million to GH¢37.43 million and expressed the hope that the bank would by the end of 2011 raise the funds to GH¢ 102.013 million.
The Chief Executive Officer of New World Renaissance, Mrs Abena Amoah, explained that international shareholders and new investors could subscribe to the offer by contacting their custodians in the country, adding that qualified new shareholders needed to open a depository account with their custodians.
She said the two main custodians in the country were Barclays Ghana Limited and Stanbic Bank Ghana Limited. The price for a CAL Bank share under that offer is US$0.14 for payment in the United States Dollars, GB£0.09 for payment in Great British Pounds and €0.10 for payment in Euros.
BoG's $260 million building: It was Ato Forson who first proposed 'sell-and-leas...
'We have to do soul-searching' — Mahama orders nationwide flood assessment
Court orders woman beater to pay GHS5,000 compensation to midwife at Tema Commun...
Over 12,000 women living with obstetric fistula in Ghana — Asokwa MP
Mahama secures 1,840 farm equipment deal from Belarus
Titus Glover slams Mahama’s flood report directive, calls it “waste of energy an...
We have increased posting of doctors from 12 to 100 to underserved regions in 20...
'You had the effrontery to call me struggling lawyer, you won't come back to pow...
Belarus manufacturers to storm Ghana next week after President's visit
Government to offer tax incentives for factories located outside Accra
